Bitcoin (BTC) Tests $76,600 Support After 84.69% Drop in Liquidations

Bitcoin (BTC) spent the session steadying after a wave of forced selling, triggered by a security incident at Binance, ran its course, according to a November 1 report from COINOTAG. The recovery that has followed reads, so far, as relief rather than conviction, leaving the durability of the $76,600 support level as the market's central open question.

Liquidations Fall 84.69%

The most prominent figure from the episode is an 84.69% drop in liquidations. Liquidations occur when exchanges forcibly close leveraged trading positions because the margin backing them has fallen below required levels, a mechanism that tends to accelerate price declines during periods of heavy selling. A contraction of that scale in liquidation activity indicates that the forced-selling cascade set off by the Binance security incident had largely subsided once it ran its course.

That subsidence also reframes the setup ahead: with exchange-mandated selling largely out of the picture, price action around the key level will reflect discretionary buying and selling decisions rather than the mechanical cascade dynamics that defined the episode.

The $76,600 Support Test

Attention now turns to the $76,600 price zone, which the report identifies as the key level to watch for Bitcoin. A support level is a price area where buying interest has historically been strong enough to slow or reverse declines. As COINOTAG framed it, whether the $76,600 floor survives the next wave of supply is the question this rebound still has to answer.

The report characterizes the ongoing recovery as relief rather than conviction, indicating that the stabilization in price has not yet been accompanied by a comparable display of sustained demand. On that reading, the signposts from here are whether liquidation data stays subdued — a signal that deleveraging has not resumed — and whether buying interest arrives in sufficient size to absorb supply at the $76,600 zone.

Background

The selling pressure traced back to a security incident at Binance, one of the world's largest cryptocurrency exchanges by trading volume and a primary venue for leveraged derivatives trading. Because liquidation data aggregates forced position closures across trading venues, sharp swings in the metric are commonly used by market observers to gauge the intensity of deleveraging episodes.

This article was first published by COINOTAG: Bitcoin (BTC) Faces $76,600 Support Test After 84.69% Liquidation Drop